MISSOURI TAX CREDIT COMMISSION RECOMMENDS REDUCING HTCs
The Missouri Tax Credit Review Commission today sent its report on Missouri’s tax credit programs to Gov. Jay Nixon. In the report, the commission recommends that the state historic tax credit (HTC) program’s annual cap be reduced from $140 million to $75 million per year, beginning July 1, 2011. The suggested cap would be permanent and not be adjusted based on state revenue. Projects already underway would be subject to an “expenditure test” to determine if they should be grandfathered under the new cap. The commission also recommends that developers be prohibited from using the HTCs in conjunction with the state low-income housing tax credit or neighborhood preservation tax credits. Finally, the commission recommends that the credits only be provided for expenses that have been paid, rather than incurred. The HTC changes were part of numerous changes that the commission recommended for Missouri’s tax credit programs. The governor and General Assembly will consider the commission’s recommendations as they work on filling a projected $400 million budget gap in fiscal year 2012.